Reveals Data Behind Sapphire Reserve Card

Reveals Data Behind Sapphire Reserve Card

They do business in some form with 61 million American households – 50% & 97 million credit & debit card accounts.

Chase invested a ton in the new ‘it’ card in the rewards space. And they’ve got good numbers on how Chase Sapphire Reserve is doing.

While the average FICO score is 785 that means many cardholders have lower scores, just as they have higher scores.

Annual spend of $39,000 sounds high but equates to $3250/month, not low but not as intimidating.

90% of users are keeping the card after the 1st year. That’s an incredible retention rate. It does makes sense to me from a value proposition standpoint people who spend regularly on travel & dining make out well with the card even compared to the Chase Sapphire Preferred Card‘s double points in those categories, and that’s without even valuing airport lounge access.

Chase is investing a lot in its digital experience because they believe a large portion of customers will leave a bank that doesn’t do a good job there & will choose a bank based on a superior mobile experience. Their data suggests 85% of wealthy use mobile apps. And not only is it important to attract & retain business but it lowers the bank’s costs as well.

With consumers’ mobile emphasis Chase is closing branches, operating smaller branches, they’re opening new branches to expand their footprint in to markets where they aren’t yet strong.

Chase used to view the branch as important to their client portfolio, it’s how they cross-sold customers so that a checking customer became a credit card customer & a mortgage customer.

They see digital as a tool here, and have had some initial success offering Chase Sapphire Reserve customers mortgages (Chase had the best deal for my mortgage in 2017, they had stackable promos for a discount & 100,000 points that were added sweeteners) and even turning cardholders into wealth management customers.